The social welfare cuts introduced in Budget 2010 will cause increased hardship for families on social welfare, according to leading charity and social advocacy groups. Social Justice Ireland (SJI) and the Society of St. Vincent de Paul (SVP) have both been critical of the Budget in statements released on their respective websites, calling it "anti-family" and "very bad news".
"Compared with this time last year, a single parent family with two children under five has sustained a cut of 10.4% in their income, or €1,820 over the year, and a couple with two children under five have sustained a cut of €2,241 or 9.2% in their income. These cuts mean more hardship for families on social welfare," said SVP in their statement. They are also critical of the introduction of prescription charges for medical card holders, stating they will be "particularly difficult" for families requiring multiple prescriptions. SVP had been receiving 500 calls a day to their Dublin office in the run up to Wednesday's Budget; following the cuts, they say they have "no doubt" that this figure will increase over the coming weeks.
SJI are also extremely critical of the government in an analysis and critique of Budget 2010 released on their
website. "This Budget is anti-family, anti-poor and anti-children," says the document. It goes on to accuse the government of being "ideologically fixated" for placing its faith in the "failed neo-liberal economic model which caused...most of the current economic problems" currently faced by Ireland.
Junior minister Conor Linehan, speaking during the budget debate on '
Tonight with Vincent Browne' on 10 December, stated that he is "not surprised" by SJI's criticism. "A lot of the commentary is very similar to what [SJI] would have said during the boom years," said Linehan. "I think we have introduced a tough but fair budget...appropriate to the circumstances we find ourselves in... this was never going to be a people pleasing budget."
The government said that Ireland's had the most generous welfare system in Europe and that cuts were necessary. However, according to the OECD's 2007 benefit calculator, states such as Luxembourg and Portugal delivered significantly higher social welfare payments to those who had recently lost their jobs. Indeed, in 2007 Ireland's spending on social protection as a percentage of GDP was the lowest in Western Europe at 18.9%. The cuts to social welfare look likely to maintain this position. (In general, comparing social welfare payments is difficult as social welfare design and delivery mechanisms differ greatly from state to state.)
Opposition parties have also been highly critical of the Budget. Fine Gael TD George Lee, speaking on the same debate, said: "There is no balance...not because [Minister of Finance Brian Linehan] took money from [those on social welfare] but because they didn't take money from other groups at all." He also accused the government of failing to address the low tax take, an issue previously identified by the Minister of Finance as crucial in the effort to boost Ireland's ailing coffers. Labour and Sinn Féin have also been highly critical of the Budget in recent days.
Anger continues to run high following the cuts introduced in Wednesday's Budget. The public sector looks almost certain to strike, limiting the delivery of essential services, and many families are now facing into an increasingly bleak Christmas. There is almost universal agreement that cuts were necessary; many feel, however, that the government has targeted the most vulnerable in society leaving the wealthy relatively untouched.
The Irish Times Budget calculator can help establish what impact the Budget will have on you. It can be accessed here.
